Posted on: April 2, 2021 Posted by: Betty Lee Comments: 0


GlobalFoundries campus in Malta, N.Y.

Mary Thompson | CNBC

GlobalFoundries, the third-largest foundry, is planning to take a position $1.4 billion in its chip factories this 12 months, and can probably double that funding subsequent 12 months, CEO Tom Caulfield instructed CNBC in an interview.

Caufield stated the corporate’s manufacturing capability is totally booked and that industrywide semiconductor provide might lag behind demand till 2022 or later.

“Proper now all our fabs usually are not solely greater than 100% utilized, we’re including capability as quick as we will,” Caulfield stated.

A scarcity of semiconductor microchips is inflicting havoc around the globe, delaying automobile manufacturing and affecting the operations of a number of the largest client electronics producers.

The scarcity has highlighted the position of a handful of foundries, that are the factories contracted by semiconductor corporations to construct chips. Many, like GlobalFoundries, are investing billions in new manufacturing traces and upgraded tools to maintain up with the surge in demand and shortfalls in provide.

GlobalFoundries is the biggest U.S.-headquartered “pure” foundry, with factories within the U.S., Germany and Singapore. It manufactures semiconductors designed by corporations like AMD, Qualcomm and Broadcom. It is presently a non-public firm owned by the federal government of Abu Dhabi. The corporate is contemplating an IPO within the first half of 2022 or sooner, Caulfield stated.

Main investments and rising demand

GlobalFoundries continues to be a comparatively small participant, with solely a 7% share of the foundry market in response to Trendforce. Different foundries are investing large {dollars} too.

Taiwan-based TSMC, the most important firm within the area with a 54% market share, stated on Thursday it plans to take a position $100 billion over the following three years to extend its capability to fulfill demand.

Intel, which designs and manufactures its chips, introduced on March 23 it plans to change into a foundry and manufacture chips for different corporations. It is investing $20 billion U.S. chipmaking crops.

Caulfield stated he welcomes Intel’s shift and would not see the corporate as a brand new competitor. One key distinction is Intel is expert at “bleeding edge” manufacturing or making chips with the smallest and most dense transistors, that are required for highly effective CPU chips on the coronary heart of a pc or smartphone.

However Caulfield says the business shortages, particularly for the automotive world, aren’t due to demand for main node chips. The shortages are for different components vehicles want, like radar chips, which do not essentially require probably the most superior manufacturing obtainable on the time.

“The auto business isn’t having a chip scarcity as a result of it would not have CPUs. Nobody’s saying I can not construct sufficient computer systems, it is all the opposite chips,” Caulfield stated.

Chips which are designed to allow particular options are what GlobalFoundries focuses on.

GlobalFoundries manufactures safe chips for contactless funds, battery energy administration and contact show drivers. These chips first had been utilized in giant portions for smartphones, however at the moment are included in a variety of merchandise from vehicles to home equipment, which has created a surge in demand.

Nevertheless, a lot of the investments within the foundry world have been for constructing bleeding-edge, high-speed chips. That every one modified final 12 months when the pandemic hit, and gross sales of electronics together with laptops, displays, and sport consoles rose when individuals purchased tools to work or go to high school from dwelling.

These merchandise require a number of extra chips past the CPU, seeding the beginning of the chip scarcity and highlighting the necessity for extra capability to construct what Caulfield calls “feature-rich” chips. Smartphones and computer systems additionally more and more want non-leading node chips to connect with 5G networks or add extra cameras.

GlobalFoundries warned it should take months earlier than it will probably enhance the variety of chips in the marketplace, however that the capability enhance is smart for long-term investments. “The minute you say, I wish to make extra capability, it is a 12-month cycle,” Caulfield stated.

“The semi business going into Covid was projecting a 5% annual progress fee for 5 years. We’re projecting that to nearly double now,” Caulfield stated. “It isn’t a one-time factor. It is a structural shift, that the pervasive want for semiconductors is accelerating.”



Supply hyperlink

Leave a Comment